Oando looks for asset deal cash

18 December 2013, News Wires – Nigerian independent Oando Energy Resources is looking to raise $193 million through a share sale scheme in order to push through its acquisition of ConocoPhillips assets in the West African energy powerhouse, according to a report.

The company is offering 2.05 billion shares at 15 naira ($0.09) a piece in order to raise the funds to part finance a previously agreed deal to buy the US giant’s assets in Nigeria, according to Reuters.

Oando agreed a $1.79 billion deal with ConocoPhillips earlier this year. The deal was later amended to change the portion of the deal relating to the US player’s 17% stake in Brass LNG.

ConocoPhillips has said the amendments do not represent an overall change in the total purchase price for the company’s Nigerian business.

The amendments have “simply split up the deal”, with the sale of the largest upstream affiliates of its Nigerian business set to close by year-end and the Brass LNG sale potentially taking longer to close.

Oando has already paid $435 million of the purchase price in the form of a deposit.

The completion date for the deal has been extended twice, most recently from 30 November until the end of January.

If the deal goes through, it is expected to add 34,000 barrels per day of oil to Oando’s production.